Startup Funding Espresso – Token Distribution Strategies

Token Distribution Strategies

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are several strategies for distributing tokens.

Here are three key areas to consider when designing and distributing your token:

Leverage the community.

Design the token incentives to encourage the community to promote it.

Give current token holders additional benefits if they attract others to the token.

This process requires more engagement from the community which takes time to bear results.

Vary the token price based on demand.

As demand for the token increases so does the price for it.

As demand decreases so also the price decreases.

This provides a pricing mechanism to increase the network and dampen speculation.

Use lockups to create price stability and token holder longevity.

In general, lockups reduce speculation overall.

Adjust the lockup period by varying the price based on hold time.

The token holder can earn a greater reward from holding the token if they commit to locking it up for a longer period.

The design, distribution, and hold time bring new strategies for distributing the token.

The goal is to encourage others to join and remain holders of the token to provide stability to the price and longevity to the community.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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